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The increasing economic threat from coronavirus – what to watch for and what should investors do

Key Points:

  • The rout in financial markets has continued, on the back of coronavirus, made worse by a flow on to oil markets.
  • The risk of a deeper hit to economic activity has risen. Key things to watch are the daily number of new cases, measures of economic stress and policy stimulus.
  • Key things for investors to bear in mind remain that: share market falls are normal; selling shares after a fall locks in a loss; share pullbacks provide opportunities; and to avoid getting thrown off a long-term strategy it’s best to turn down the noise during times like this.

 

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